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How To Avail Loan Against Sukanya Samriddhi Yojana?

IndianMoney.com Research Team | Updated On Thursday, February 21,2019, 11:33 AM

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The Government is focusing on the development of the girl child through the Beti Bachao, Beti Padhao Yojana. The aim of this campaign is to spread awareness and increase the efficiency of welfare services for the benefit of the girl child.

The Government had launched the Sukanya Samriddhi Yojana as part of the Beti Bachao, Beti Padhao Yojana. Sukanya Samriddhi Yojana is very important for the girl child, to help meet her marriage and education expenses.

So what is the Sukanya Samriddhi Yojana (SSY)? This is nothing but a small deposit scheme, which is backed by the Government of India. This scheme targets the parents of the girl child, encouraging them to invest for their daughter’s education and marriage.

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Can You Avail Loan Against Sukanya Samriddhi Yojana?

1. How can you open a Sukanya Samriddhi Yojana account?

Sukanya Samriddhi Yojana can be opened only in the name of a girl child, who is below 10 years of age. This is as on the date of opening the account. SSY can be opened at an authorized bank or a post office. A maximum of two Sukanya Samriddhi Yojana accounts can be opened if there are two girls in a family. You need to make a minimum deposit of Rs 1,000 in the SSY.

You then need to invest a minimum of Rs 1,000 up to a maximum of Rs 1.5 Lakhs in a financial year. To keep the SSY account active, you need to deposit money for the initial 14 years. If your girl child was 10 years when this account was opened, you have to make deposits till your girl child turns 24.

After this period if the account is not closed, it continues to earn the applicable rate of interest at the prevailing interest rate. SSY offers an interest of 8.1% per year compounded annually. This is for the quarter (January 1st 2018 – March 31st 2018).

2. How to avail loan against Sukanya Samriddhi Yojana?

You must be familiar with loan against securities. You can pledge your deposits and avail a loan against them. Sadly, you cannot take a loan against investments made towards SSY. But, money can be withdrawn from SSY, when your girl child turns 18.

You can withdraw a maximum of 50% of the account balance (money in the SSY account), of the preceding year. The money in this account can be used only for the welfare of the girl child, which is for her higher education.

SSY matures in 21 years from the date of opening this account. If you open the account when your girl child is 9 years, it matures when she is 30 years. You can close this account before the 21 year maturity, called premature closure and use this money for her marriage, provided your daughter is not below 18 years at the time of her marriage.

3. Tax benefits of Sukanya Samriddhi Yojana

SSY enjoys the EEE benefit. The money you invest enjoys a tax deduction up to a maximum of Rs 1.5 Lakhs a year, under Section 80C. The interest earned and maturity amount is tax-free. Be Wise, Get Rich.

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.